On Tuesday, a suicide bomber blew himself up outside a hotel frequented by Shias in Imam Bargah district in the city.
Agence France presse has reported that the number of those killed or injured has risen to more than 50 by Wednesday morning.
Rizwan Khan, a Peshawar police commander confirmed that the incident was a terrorist attack in which more than 6 kilograms of explosives was used.
He said the suicide bomber detonated his explosives belt in a Shia dominated neighborhood near a hotel frequented by Shia passengers.
The bomber was sitting at a nearby shop before rushing toward the restaurant and detonating his explosives, another police official Najeeb Rehmna told reporters.
In a separate incident on the same day, unknown assailants shot dead a Shia leader in the same bazaar.
A number of Pakistani officials, including the president and prime minister, have condemned the attacks as well as earlier blasts in the port city of Karachi.